Merger Update

National Grid Group PLC
2 July 2002



                  National Grid Group plc and Lattice Group plc

                  Merger Update - OFT Merger Clearance Confirmed


National Grid Group plc (National Grid) and Lattice Group plc (Lattice) welcome
the announcement today by The Secretary of State for Trade and Industry that
she has decided not to refer the proposed merger of National Grid and Lattice
(the 'Merger') to the Competition Commission under the provisions of the Fair
Trading Act 1973.

The Merger remains subject to the approval of shareholders of National Grid and
Lattice, sanction of the Lattice scheme of arrangement by the High Court, and
the satisfaction of a number of conditions including regulatory consents and
approvals. National Grid and Lattice remain confident that the Merger will
complete during autumn 2002.


Enquiries:


National Grid                               Lattice
Investor Relations                          Investor Relations
Marcy Reed           44 (0) 20 7312 5779    Melissa Sellars       44 (0) 20 7389 3219

Terry McCormick      44 (0) 20 7312 5785    Gary Rawlinson        44 (0) 20 7389 3218
Louise Clamp         44 (0) 20 7312 5783

Media Relations                             Media Relations
Clive Hawkins        44 (0) 20 7312 5757    Gillian Home          44 (0) 20 7389 3212
                                            Jim Willison          44 (0) 20 7389 3213


Citigate Dewe Rogerson                      The Maitland Consultancy
Anthony Carlisle     44 (0) 20 7638 9571    Angus Maitland        44 (0) 20 7379 5151



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